Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 4 Diversity at Work

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Diversity  Establishing a heterogeneous workforce  Major Reason for Diversity in the workforce  The shift from a manufacturing economy to a service economy  Globalization of markets  New business strategies that require teamwork  Mergers and alliances that require different corporate cultures to work together  Changing labor market

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  The Service Economy  Service employees need to understand their customers, to anticipate and monitor their needs and expectations.  Similarities in culture, dress, and language between service workers and customers create more efficient interactions and satisfaction.  The Globalization of Markets  Customers have more options available; more power to insist that their needs and preferences be satisfied

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  New Business Strategies Require More Teamwork  Companies now rely on a team structure  Promotes flexibility, reduces operating costs, speeds responses to technological change, requires fewer job classifications, encourages better response to new worker values, and attracts and retains top talent  Brings together employees with different knowledge and perspectives

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Evolving Changes in Organizations and Markets  Mergers and Strategic Int’l Alliances  The ‘marriage’ of two foreign businesses with unique corporate cultures and customs make the acceptance of diversity a must in the global market  Changing Labor Market  The influx of more women, more immigrants, more people of color, and more older workers in the workforce in the next 25 years makes acceptance of diversity a must in the future

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Changing Labor Market: Different Not Deficient  Steps to attaining the advantages of diversity  All employees must value different races, ethnic groups, cultures, languages, religions, sexual orientations, levels of physical ability and family structures  Skeptical managers, supervisors, and policymakers need to understand that different does not mean deficient

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Link Between Discrimination & Job Performance  Discrimination: the underlying culprit of labor turnover  Tendency to feel “burned out”  Reduced willingness to take initiative on the job  Greater likelihood of planning to change jobs  Meeting the needs of the minority employee  Inclusion  Encouragement  Opportunity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Leading by Example  Xerox – “If you don’t value diversity, you can’t manage it.”  Supports diversity through recognition and encouragement of a network of local and regional caucus groups  Examining the backgrounds of all top executives and identifying the key positions they held at lower levels; then, setting goals for getting minorities and women into these jobs  Transforming total employment from male-dominated to a fully diverse workforce

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Leading by Example  Pacific Bell  Developed a new recruitment strategy to attract minorities  Established an internship program for third-year college students  Existing minority employees received 6-day off-site training programs conducted by external consultants designed to develop their skills and provide a safe place for participants to talk about sensitive issues such as covert racism and prejudice

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Leading by Example  IBM – A Family Friendly Policy  Advance women through networking groups and leadership training initiatives  Hosts an internal conference--Women in Technology  Leave for childbirth gives mothers and fathers three years of job-guaranteed time off with benefits  Offer near-site child care centers

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Leading by Example  Levi Strauss & Company – one of the most ethnically and culturally diverse companies in the U.S;58% of its U.S. employees belong to a minority group  Sponsors Valuing Diversity education programs  Encourages minorities and women to apply for job openings in its job ads  Supports in-house networking groups of African Americans, Hispanics, Asian-Pacific Islanders, women, lesbians, and gay men

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Maximizing the Potential of a Racially & Ethically Diverse Workforce  Diversity linked to business strategy  Focus on bringing in the best talent  Establish mentoring programs among employees of same and different races  Hold managers accountable for meeting diversity goals  Develop career plans for employees as part of performance reviews  Promote minorities to decision-making positions  Diversify the company’s board of directors

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Women in the Workforce  “ Women’s issues” as business issues  Women no less committed employees;3/4 of professional women quit large companies because of lack of career progress; only 7% left to stay at home with their children  Companies not offering child care and flexibility in work scheduling suffer  Accommodating women in the workforce is not “the right thing to do,” but the smart thing to do

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Women in the Workforce  Providing women with opportunities not previously available  Alternate career paths  Extended leave  Flexible scheduling  Flextime  Job sharing  Teleworking

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Five Generations of Workers  Swing generation – born roughly between 1910 and 1929  Most but not all are retired  Silent generation – born between 1930 and 1945  Influenced by the swing generation  Many hold positions of power  Baby-boom generation – born between 1946 and 1964  Believe in rights to privacy, due process, and freedom of speech in the workplace  Believe the best should be rewarded without regard to age, gender, race, position, or seniority  Few leave jobs voluntarily

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Five Generations of Workers  Generation X – born between 1965 and 1977  About 1/3 of the workforce  Tend to be independent, cynical, and do not expect the security of long-term employment; also tend to be practical, focused, and future oriented  Generation Y – born between 1977 and 1997  Includes offspring of the baby-boomers and an influx of immigrants th  Grew up around more sophisticated technologies  Good at multitasking; downfalls include short attention spans, the constant need for stimulation or entertainment, and the blurring of the lines between work and leisure time while on the job

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Integrating Older Workers Into the Workforce  Six priorities to maximize the use of older workers  Age and experience profiles  Job performance requirements  Performance management  Workforce interest surveys  Training and counseling  Structure of jobs

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sexual Orientation & Nondiscrimination Policies  Inclusive new policies and benefits for gay and lesbian employees  Over 75 percent of Fortune 1000 firms have elected to add the words “sexual orientation” to their nondiscrimination policies  1 in 8 of all firms – 1 in 4 with more than 5000 workers – offer domestic partner benefits

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing Internal Organizational Environments of the Future  Suggested actions for effective future management  Develop an age, gender, and race/ethnic profile of the present workforce  Carefully assess job performance requirements  Check for possible unfairness in performance management  Use interest surveys to determine what current workers want  Provide opportunities for employee training and career counseling  Explore with workers alternatives to traditional work patterns